Wang Corp. had $100,000 of 7%, $20 par value preference shares and 12,000 shares of $25 par value ordinary shares outstanding throughout 2011.
(a) Assuming that total dividends declared in 2011 were $64,000, and that the preference shares are not cumulative but are fully participating, ordinary shareholders should receive 2011 dividends of what amount?
(b) Assuming that total dividends declared in 2011 were $64,000, and that the preference shares are fully participating and cumulative with preference dividends in arrears for 2010, preference shareholders should receive 2011 dividends totaling what amount?
(c) Assuming that total dividends declared in 2011 were$30,000, that the preference shares are cumulative, non-participating and were issued on January 1, 2010, and that $5,000 of preference dividends were declared and paid in 2010, the ordinary shareholders should receive 2011 dividends totaling what amount?